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Grace [21]
3 years ago
10

Knightmare, Inc., will pay a dividend of $6.15, $9.05, and $12.25 per share for each of the next three years, respectively. The

company will then close its doors. Investors require a return of 11.7 percent on the company's stock. What is the current stock price?
Business
2 answers:
iragen [17]3 years ago
8 0

Answer:

Current Price of Stock $21.55

Explanation:

As Knightmare Inc. will pay dividend for 3 years, we can find the price of stock by discounting(using 11.7% required rate of return) the dividends of 3 year period to get the current value of stock.

Value of stock = 6.15/(1.117) + 9.05(1.117)^2+ 12.25/(1.117)^3

Current Price of Stock = $21.55

iVinArrow [24]3 years ago
4 0

Answer:

The current stock price is $21.54

Explanation:

The current price of the share of Knightmare Inc is the present value of all future cash flows receivable from owning stake in the company.

The future cash flows in this sense are the dividends payable by the company in years 1,2 and 3 which are $6.15,$9.05 and $12.25 per share respectively.

The discount factor in this case is given as 1/(1+r)^N where  r is the required rate of return of 11.7% and the relevant year of dividend receipt,hence the share price is computed thus:

Year   cash flow discount factor               PV

1            $6.15      1/(1+11.7%)^1=0.89525   $5.5

2             $9.05  1/(1+11.7%)^2=0.80148      $7,25

3            $12.25  1/(1+11.7%)^3=0.71753        $8.79

Total present value                                      $21.54

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A bicycle chain is pulled tightly so that mn is a common tangent of the gears?
Nana76 [90]

Question: The question is incomplete. The bicycle chain diagram wasn't attached to your question. Find attached of the diagram and the answer.

A bicycle chain is pulled tightly so that mn is a common tangent of the gears. Find the distance between the centers of the gears.

Answer: The distance between the centers of the gears is 17.8 in

Explanation:

From the attached file, using Pythagoras theorem to find the value of x, we have;

h = 4.3 - 1.8

   = 2.5

x² = MN² + h²

x² = 17.6² +2.5²

x² = 309.76 + 6.25

x² = 316.01

x = √316.01

x = 17.8

Therefore, the distance between the centre of the gear is 17.8 in

4 0
3 years ago
Read 2 more answers
Sunbed Company sells tanning beds that are shipped in large reusable containers. Customers are charged a deposit for each contai
kolbaska11 [484]

Answer:

Liability needs to be reduced by cash refunds that are made to customers as and when the containers are returned.

Cash refunds = Deposits collected * Percentage returned

Cash refunds = $100,000 * 95%

Cash refunds = $95,000

Date  General Journal                             Debit         Credit

          Liability - Refundable Deposits  $95,000

                 Cash                                                        $95,000

8 0
3 years ago
Ann, Bob, Carl, and Dan are randomly lined up. The first two players in line then play a game; the winner of that game plays a g
Furkat [3]

Answer:

The probability of Ann winning the prize is 2.464

Explanation:

The probability of Ann winning the prize can be analysed as potray below

1.pr(of Ann being the first player selected).

Here Ann plays the 2nd,3rd and 4th player to win prize,the probability=0.8×0.8×0.8=0.512

2.Pr(of Ann being the second player selected)

If Ann is randomly selected as the second player,she will still need to play three matches to win with 1st,3rd and 4th

0.8×0.8×0.8=0.512

3.Pr(of Ann. Being the third player chooses randomly),Ann will get to play just two players i.e the winner of 1and 2 and the 4th.the probability=0.8×0.8=0.64

4.Pr(of Ann being the 4th player choosen randomly)

Ann gets to play only one match to win the prize in this scenario

So probability of a Ann win is 0.8

Total probability a Ann winning the prize=0.512+0.512+0.64+0.8=2.464

5 0
4 years ago
Sydney worked as an Urban Planner before switching to City Court Clerk. What most likely remained the same despite the job chang
pantera1 [17]

Answer:

It's A. If i got this from Quizlet and it said it was right.

Explanation:

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8 0
3 years ago
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The price of a certain property increased by 10% in the first year, decreased by 20% in the second year, and increased by 25% in
Fynjy0 [20]

Answer:

Let suppose the value of property is 100 dollars currently.

The price of a certain property increased by 10% in the first year, means the value of property at this point is (100 *1.1) 110 dollars.

In the second year the value of property decreases by 20% mean the value of property at this point is (110*0.80) 88 dollars, that is 80% of previous value determine.

In the third year the value of property increases by 25% mean the value of property at this point is (88*1.25) 110 dollars that is 25% more than previous value determine.

So in second year the value in dollars is 88 dollars.

3 0
3 years ago
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